Viticulture / Enology

CALL for submission of wine promotion programs in third countries

1. National Support Program of Romania in wine sector, during 2014 – 2018 

            Based on the evaluation of the National Support Program 2009 – 2013 impact, in which the wine sector has absorbed 100% the European funds, Romania has notified to the European Commission the National Support Program of Romania in wine sector, during 2014 – 2018.

            Depending on the specific conditions, the National Support Program 2014 - 2018 contains the following measures:

1. Promotion of wines, in Member States, with a view to informing consumers about the responsible consumption of wine and about the Union systems covering designations of origin and geographical indications or in third countries, with a view to improving their competitiveness;
2. Restructuring and conversion of vineyards;

3.  Harvest insurance;
4.  Investments;
5.  By-product distillation.

1.1. Promotion of wines

The beneficiaries may be private companies as well as professional organizations, producer organizations, inter-branch organizations or, public bodies. In any event, a public body cannot be the sole beneficiary of the promotion measure, but only in association with one/more association forms previously mentioned.

The measures shall apply to wines with a protected designation of origin or a protected geographical indication or wines with an indication of the wine grape variety and shall consist only of one or more actions which will contribute to increase the information level regarding the wines promotion.

The amount granted by F.E.G.A. does not exceeds 50% of expenses. The National Support Program 2014 – 2018 has introduced the optionality of the state aid for promotion in amount of 30% eligible expenses, in accordance with Guidelines regarding the State Aid.

Quantifying aims:

  • Total absorption of the funds dedicated to this measure;
  • Improving competitiveness of PDO and PGI wines;
  • New third entries;
  • Consolidation of Romanian PDO and PGI wines on traditional markets.

1.2. Restructuring and conversion of vineyards

The measure had the highest impact on wine sector in Romania. Due to this measure, the wine-producers succeeded in restructuring and modernization of their vineyards, according to the market requirements. The main amount of financial allocation was targeted to this measure. The objective of measures relating to the restructuring and conversion of vineyards shall be to increase the competitiveness of wine producers.

The support for the restructuring and conversion of vineyards may only cover one or more of the following activities:         

  1. varietal conversion, including by means of grafting-on;
  2. relocation of vineyards;
  3. replanting of vineyards, where that is necessary following mandatory grubbing up, for health or phytosanitary reasons;
  4. improvement of the vineyard management techniques.

 The support is granted per hectare and shall not exceed 75% of actual costs. 

Quantifying aims:

  • Area under restructuring/conversion;
  • Total absorption of the funds.

1.3. Harvest insurance 

          The support shall contribute to safeguarding producers incomes where there are losses as a consequence of natural disasters, adverse climatic events, diseases or pest infestations. The support for harvest insurance may be granted in the form of a Union financial contribution which shall not exceed:

  • 80 % of the cost of the insurance premiums paid for by producers for insurance against losses resulting from adverse climatic events which can be assimilated to natural disasters
  • 50 % of the cost of the insurance premiums paid for by producers for insurance:
            (i)  against losses referred to in point (a) and against other losses caused by adverse climatic events;
            (ii) 
    against losses caused by animals, plant diseases or pest infestations.

Quantifying aims:

  • Safeguard incomes;
  • Total absorption of the funds dedicated to the measure.

1.4. Investments

Support may be granted for tangible or intangible investments in processing facilities and winery infrastructure, as well as marketing structures. The investments shall improve the overall performance of the enterprise and its adaptation to market demands, as well as to increase its competitiveness, and shall concern the production or marketing of grapevine products, including with a view to improving energy savings, global energy efficiency and sustainable processes.

The amount of the support is 50% of the eligible investments

Quantifying aims:

  • Total absorption of the funds dedicated to the measure;
  • Modernization of the own presentation locations;
  • Wines ageing, under good conditions;
  • Higher values of PDO and PGI wines.

1.5. By-products distillation 

The support may be granted for the voluntary distillation of by-products of wine making. The amount of aid shall be fixed per % volume and per hectoliter of alcohol produced. No aid shall be paid for the volume of alcohol contained in the by-products to be distilled which exceeds 10 % in relation to the volume of alcohol contained in the wine produced. The aid shall be paid to distillers that process by-products of winemaking delivered for distillation into raw alcohol with an alcoholic strength of at least 92 % by volume.

Quantifying aims:

  • Increasing producers income stability;
  • Increasing of absorption of the allocation;
  • Diversification of the by-products elimination modalities.

 

2. Financial allocation of the National Support Program of Romania in wine sector, during 2014 – 2018 

During these five years, the financial allocation is of 47.7 millions euro per year.

           Financial allocation per measures

Period 2014 - 2018
Estimative values

 

  Financial budget  
Measures R(EC) no. 1234/2007 2014 2015 2016 2017 2018 Total
1 2 3 4 5 6 7 8
Restructuring and conversion of vineyards Art. 103q 47084,23 37350,0 35212,47 23350,0 31850,0 183846,7
Harvest insurance Art. 103t 253,3 350,0 350,0 350,0 350,0 1653,3
Investments Art. 103u 0 2500 4000 4500 4500 15500
By-products distilation Art. 103v 0 500,0 500,0 1000,0 1000,0 3000,0
 
  R(EU) no. 1308/2013            
Promotion Art. 45 362,47 7000 7637,53 9500 10000 34500
Replanting of vineyards for health or phytosanitary Art. 46 para. (3) letter. c)            
Total   47700 47700 47700 47700 47700 238500

3. Statistical data in wine sector – 2014 

Specification UM 2007 2008 2009 2010 2011 2012 2013 2014
Total area under cultivation Ha 180.402 181.540 181.793 181.562 181.011 183.169 181315 179939
Average price per kg grapes Lei/kg 0,89 1,28 1,08 1,54 1,36 1,94 1,07 1,64
Total wine production Th hl 5289 5369,2 4957,4 3287,2 4058,2 3310,6 5113,3 3750,0
Total area unde restructuring Ha 4861 4834,16 5339,51 5124 4058,7 4455,4 7406,5 5959

Source: pct.2 - 2007-2013 NIS Data - The Romanian Statistical Yearbook 
                      2014 - NIS data
            pct. 1,3 – MARD operational data
            pct. 4 – APIA

wine1 

                                       Source: 2007 – 2014 NIS Data - The Romanian Statistical Yearbook
                                                   2015 - NIS data

wine2

Source: 2007 – 2014 NIS, The Romanian Statistical Yearbook, tab. 10.6
2015 MARD operational data

4. Wine production per quality categories in 2015

 

Total production (th hl)

Noble wine (th hl)

Wine from inter-specific hybrids (th hl)

3627,00

2083,00

1543,6

 

5. Wine production on quality and wines areas in 2015

 

Wine region

Total,

th hl

Wines cu PDO

Wines with PGI

Wines without PDO and PGI

Transilvania Plateau

             268,280

107,211

19,541

139,528

Moldova Hills

789,234

178,547

145,061

465,625

Muntenia and Oltenia Hills

557,365

140,653

46,650

370,061

Banat Hills

196,832

73,217

0,000

123,615

Crişana and Maramureş Hills

112,143

18,168

27,447

66,528

Dobrogea Hillocks

146,805

55,132

59,970

38,702

Danube Terraces

11,727

0,000

6,164

5,563

Sands and other convenient lands from the South of the country

3,013

0,000

0,000

3,013

TOTAL

           2083,400

572,929

297,834

1212,637

6. Wine production on color in 2015

Wine

region

Noble wine - thousands hl

Total

White wine

Rose wine

Red wine

Transilvania Plateau

266,349

203,697

0,606

62,046

Moldova Hills

785,834

653,583

13,607

118,643

Muntenia and Oltenia Hills

557,365

286,630

31,061

239,674

Banat Hills

196,832

84,540

5,162

107,130

Crişana and Maramureş Hills

115,428

18,2016

7,152

30,059

Dobrogea Hillocks

146,805

59,091

7,648

80,065

Danube Terraces

11,727

6,704

0,000

5,023

Sands and other convenient lands from the South of the country

3,013

1,610

0,000

1,403

TOTAL

2083,355

1374,074

65,237

644,044

7. Main wine varieties under cultivation in 2015

Variety

Area (ha)

Percentage (%)

Fetească Regală

13723

15,67

Merlot

11975

13,68

Fetească Albă

10210

11,66

Mix of noble wines

6045

6,90

Riesling Italian

5853

6,68

Aligote

5142

5,87

Sauvignon

5023

5,73

Cabernet Sauvignon

5013

5,72

Muscat Ottonel

3333

3,80

Băbească Neagră

2745

3,13

Roşioară

2404

2,74

Fetească Neagră

1718

1,96

Others

14337

16,46

Total

87521

100

Source: MARD operational data

8. Wines intra EU and extra EU trade

Import

2009 2010 2011 2012 2013 2014 2015
Th tons Mil. € Th tons Mil. € Th tons Mil. € Th to Mil. € Th tons Mil. € Th tons Mil. € Th tons Mil. €
13,1 14,7 22,5 20,7 90,7 50,5 54,5 41,9 36,7 38 34,1 33,2 50,7 42,4

Export

2009 2010 2011 2012 2013 2014 2015
Th tons Mil. € Th tons Mil. € Th tons Mil. € Th tons Mil. € Th tons Mil. € Th tons Mil. € Th tons Mil. €
10,9 13,7 9,8 12,9 10,4 14,4 11,4 15,9 10,4 16,5 10,5 18,0 13,8 22,3

Import

Year

2010

2011

2012

2013

2014

2015

Total imported quantity of wine (thou. tons), of which:
- intra EU

 

22,5
21,1

 

 90,8
85,8

 

 54,5
41,3

 

36,7
23,4

 

34,1
25,8

 

50,7
41,6

 Export

Year

2010

2011

2012

2013

2014

2015

Total imported quantity of wine (thou. tons), of which:
- intra EU

 

 9,8
7,1

 

10,5
  8,1

 

11,4
  8,9

 

10,4
  8,1

 

10,5
7,7

 

13,8
10,8

 Source: – National Institute of Statistics 

 9. The National Inter-Branch Organization in wine sector (ONIV-ro abbreviation) - overall presentation - RO version (pdf, 424 KB)

10. UE legislation

- Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007;
- Commission Regulation (EC) No 555/2008 of 27 June 2008 laying down detailed rules for implementing Council Regulation (EC) No 479/2008 on the common organisation of the market in wine as regards support programmes, trade with third countries, production potential and on controls in the wine sector, with subsequent amendments;
- Commission Delegated Regulation (EU) No 612/2014 of 11 March 2014 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council by amending Commission Regulation (EC) No 555/2008 as regards new measures under the national support programmes in the wine sector ;
- Commission Implementing Regulation (EU) No 614/2014 of 6 June 2014 amending Regulation (EC) No 555/2008 as regards the application of certain support measures in the wine sector;
- Commission regulation (EC) No 607/2009 of 14 July 2009 laying down certain detailed rules for the implementation of Council Regulation (EC) No 479/2008 as regards protected designations of origin and geographical indications, traditional terms, labelling and presentation of certain wine sector products, with subsequent amendments;
- Commission Regulation (EC) No 606/2009 of 10 July 2009 laying down certain detailed rules for implementing Council Regulation (EC) No 479/2008 as regards the categories of grapevine products, oenological practices and the applicable restrictions, with subsequent amendments.
- Commission Delegated Regulation (EU) 2015/560 of 15 December 2014 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards the scheme of authorisations for vine plantings ;
- Commission Implementing Regulation (EU) 2015/561 of 7 April 2015 laying down rules for the application of Regulation (EU) No 1308/2013 of the European Parliament and of the Council as regards the scheme of authorisations for vine plantings;

11. National legislation

- Government Decision no. 578/2014 on establishing the method of financial support from the European Union for producers in the wine sector in the period 2014 - 2018, with subsequent amendments;
ORDER no. 1329 of 25 August 2014 approving the Methodological Norms regarding the conditions for implementing the measure of insuring the crop of wine grape, eligible for financing under the Romania national support program in the wine sector from 2014 to 2018;
ORDER no. 1562 of 14 October 2014 approving the procedure for withdrawal under supervision of by-products of wine, published in the Official Gazette of Romania, Part I, no. 763 dated 21 October 2014;
ORDER no. 1337/2013 approving the Methodological Norms on the conditions for implementing the measure of wine promoting on third country markets, eligible for funding under the National Programme for support in the wine sector for 2014-2018 and approval of the contract on the implementation of programs promoting wine country markets;
- ORDER no. 949/2013 for the amendment and completion of the minister of agriculture and rural development Order No. 247/2008 on the approval of norms of application of programs of restructuring/reconversion of vineyards, conducted with community support for the 2008/2009 - 2013/2014 campaigns, with subsequent amendments;
- ORDER no. 1122/2013 for the amendment and completion of the Annex of the Minister's of agriculture and rural development ORDER No. 247/2008 on the approval of norms of application of programs of restructuring/reconversion of vineyards, conducted with community support for the 2008/2009 - 2013/2014 campaigns;
- ORDER No. 247/2008 on the approval of norms of application of programs of restructuring/reconversion of vineyards, conducted with community support for the 2008/2009 - 2013/2014 campaigns;
- ORDER No. 73/2011 for the amendment and completion of the norms of application of programs of restructuring/reconversion of vineyards, conducted with community support for the 2008/2009 - 2013/2014 campaigns, approved by the Minister's of agriculture and rural development ORDER No. 247/2008
- ORDER no. 111/2011 on the recognition of The National Inter-Branch Organization - ONIV as the chain-branch organization "grape, wine, wine-based products."

- ORDER no. 41/2012 regarding the abrogation of the Minister of Agriculture, Forests, Water and Environment ORDER no. 71/2004 on approving the Regulation on the registration of economic agents operating in the wine industry wine in the Registry wine industry.